ROSS STORES Reports Strong Q3 Earnings with 7.9% Revenue Increase from Last Year
November 27, 2023
☀️Earnings Overview
On November 16 2023, ROSS STORES ($NASDAQ:ROST) announced their earnings results for the third quarter of fiscal year 2024, which ended on October 31 2023. Their total revenue was USD 4924.9 million, a 7.9% increase from the same quarter in the previous year, and their net income rose by 30.8%, amounting to USD 447.3 million.
Analysis
GoodWhale has conducted an analysis of ROSS STORES‘ financials and based on their Star Chart, ROSS STORES has a very high health score of 8/10. This indicates that the company is capable of sustaining future operations in times of crisis, thanks to its strong cash flows and debt. Furthermore, according to GoodWhale’s classification, ROSS STORES is considered a ‘gorilla’ company, one that has achieved sustained and high revenue or earning growth due to its competitive advantage. Given the strength of the company in terms of assets, dividend, and profitability, as well as only medium growth, this makes ROSS STORES an ideal opportunity for long-term investors. Those who are looking for a company that is stable and capable of providing a steady return of capital over time would benefit from investing in ROSS STORES. Furthermore, investors who are looking for a company that has the potential to capitalize on future opportunities and grow over time would also benefit from ROSS STORES. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ross Stores. More…
| Total Revenues | Net Income | Net Margin |
| 19.57k | 1.71k | 8.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ross Stores. More…
| Operations | Investing | Financing |
| 2.78k | -776.63 | -1.41k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ross Stores. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.27k | 9.69k | 13.16 |
Key Ratios Snapshot
Some of the financial key ratios for Ross Stores are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.5% | 78.2% | 11.1% |
| FCF Margin | ROE | ROA |
| 10.3% | 30.4% | 9.5% |
Peers
Though it may not seem like it at first, the retail industry is actually fiercely competitive. This is especially true for those in the discount retail sector, where companies like Ross Stores Inc. must compete with the likes of Burlington Stores Inc, Kohl’s Corp, and Chiyoda Co Ltd. In order to stay ahead, Ross Stores Inc. has to offer low prices and a good selection of merchandise.
– Burlington Stores Inc ($NYSE:BURL)
Burlington Stores Inc is an American off-price department store retailer, headquartered in Burlington, New Jersey. It was founded in 1972 and has grown to operate over 700 stores in 45 states and Puerto Rico. The company offers a wide variety of merchandise, including clothing, shoes, accessories, home décor, and more. Burlington Stores Inc has a market cap of 9.89B as of 2022. The company’s return on equity is 28.14%. Burlington Stores Inc is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol “BURL.”
– Kohl’s Corp ($NYSE:KSS)
Kohl’s Corp is a publicly traded company with a market cap of 3.66B as of 2022. The company has a return on equity of 16.46%. Kohl’s Corp is a retail company that operates department stores in the United States. The company was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.
– Chiyoda Co Ltd ($TSE:8185)
Chiyoda Co Ltd is a Japanese engineering company. The company has a market cap of 26.54B as of 2022 and a Return on Equity of -2.63%. The company provides engineering, procurement, and construction services for the oil, gas, chemicals, power, and other industries.
Summary
ROSS STORES recently reported their earnings for FY2024 Q3, with total revenue of USD 4924.9 million and net income of USD 447.3 million – an increase of 7.9% and 30.8%, respectively, from last year. Despite this impressive financial performance, the stock price moved down the same day. Investors should examine the company’s fundamentals to better understand the stock price movement, such as the quality of their products and services, competition in the market, and any potential risks that could impact their future performance. With a thorough analysis of the company’s financial and operational performance, investors may be able to make informed decisions on whether or not ROSS STORES is a good investment opportunity.
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